FX Volatility Falls to 7 Year Low

The dollar eased against most major currencies today as many tidied up books at month's end and warily awaited potentially market-moving meetings next week by the European Central Bank and other monetary policymakers. The CAD is weaker today after the Canadian GDP showed slower economic growth slowed in Q1. The harsh winter slowed construction, business spending, and exports. China’s yuan completed the first monthly gain of this year as investors bet that the government will take more steps to revive economic growth. The Russian ruble slid for a fifth day as looming foreign-currency demand fueled speculation the best monthly rally in over two years was overdone. FX volatility falls to 7 year low as central bank policies of montetay stimulus restrain price swings.

Today's Events• U of Michigan Consumer Sentiment fell to 81.9 (median 84.5) from 84.1 in April. • Chicago ISM rose to 65.5 in May, above median 61 and up from 63.0 in April• Canada GDP rose only 1.2% in Q1, falling short of projections (median +1.7%) and the BoC's 1.5% estimate. • German April retail sales dropped 0.9% m/m, against expectations for a rise over the month.• US personal income was up 0.3% (median 0.3%), while consumption was down 0.1% (median 0.2%).• NYMEX crude is up 16 cents at $102.88/bbl, stabilizing following Wednesday's bout of profit taking.

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The dollar eased against most major currencies today as many tidied up books at month's end and warily awaited potentially market-moving meetings next week by the European Central Bank and other monetary policymakers. The CAD is weaker today after the Canadian GDP showed slower economic growth slowed in Q1. The harsh winter slowed construction, business spending, and exports. China’s yuan completed the first monthly gain of this year as investors bet that the government will take more steps to revive economic growth. The Russian ruble slid for a fifth day as looming foreign-currency demand fueled speculation the best monthly rally in over two years was overdone. FX volatility falls to 7 year low as central bank policies of montetay stimulus restrain price swings.

Today's Events• U of Michigan Consumer Sentiment fell to 81.9 (median 84.5) from 84.1 in April. • Chicago ISM rose to 65.5 in May, above median 61 and up from 63.0 in April• Canada GDP rose only 1.2% in Q1, falling short of projections (median +1.7%) and the BoC's 1.5% estimate. • German April retail sales dropped 0.9% m/m, against expectations for a rise over the month.• US personal income was up 0.3% (median...Read More